Zahavi in and then out of Wolves bid as Souness insists £20m offer is genuine

Wolverhampton Wanderers and Graeme Souness were at loggerheads last night after the former Newcastle manager's suggestion that he had tabled a takeover offer for the Championship club was categorically dismissed. It is understood, however, that Souness did indeed bid £20m for Wolves, although Pini Zahavi, the Israeli agent who has been linked with a consortium involving the Scotsman, is not involved in the deal.

Zahavi, who has considerable influence in football through his ability to broker transfer and business deals at the top level of the game, has held talks with a number of leading figures in recent months with the intention of raising capital to buy a high-profile English club.

He had recently talked with Souness, a long-term friend, about the possibility of being part of his plans and it is believed the two men seriously discussed investing in Wolves. Zahavi had envisaged Souness taking on an upstairs role that would allow him to oversee the day-to-day management of the football club, leaving first-team affairs to someone else.

However, Souness's statement yesterday, when he said that he had spoken to both the Wolves owner, Sir Jack Hayward, and the chief executive, Jez Moxey, to make a £20m offer, came as a surprise to Zahavi and signalled the Scot's intention to go it alone. It is thought that Zahavi is comfortable with Souness's decision. But Moxey yesterday denied knowledge of the bid.

Souness had not divulged the details of the business partner who had helped to finance his offer and it is understood that Wolves are highly sceptical about the strength of his backing. Hayward is keen to sell Wolves and recently agreed to drop his asking price to £20m after hearing fans criticise the club's stagnation, but it is highly unlikely that he would relinquish his position to Souness, whose nomadic football career hardly portends a stable future.

The primary consideration for the Wolves owner is that his successor has the club's interests at heart and will provide considerable finance to take the club forward through "team strengthening". Souness's potential involvement raises questions about his ability to satisfy that criterion, although yesterday he remained adamant that his proposal was a serious one and he reacted with dismay to Moxey's forthright denial.

"I have offered to buy Wolves for £20m," said Souness, who was at Molineux for the Barnsley match on New Years Day. "I don't know why Jez Moxey is saying these things. I have had several telephone conversations with Sir Jack Hayward and I have spoken as well with Jez Moxey. And last week I made an offer, subject to an examination of the club's books and accounts, of £20m, which is the figure Sir Jack had publicly declared he was looking for.

"I was told 'No' by Jez Moxey but the offer still stands. It is Sir Jack's football club and if he chooses not to sell it at this time that's his prerogative. He can do what he wants. I have a partner and I see the club having vast potential and I will put more money into it if I got the opportunity. This is not a Johnny Foreigner coming along to make a quick buck. But Jez has told me 'No', the offer wasn't acceptable. That's the end of the matter, but it is there on the table."

Wolves have been open to a takeover for some time, with Hayward keen to step down for the past three years. He has invested huge sums in the club, which he bought in 1990, but has enjoyed only one season of Premiership football. Milan Mandaric, who is close to assuming control at Leicester, was previously linked with the Championship club but Wolves strongly rebutted any suggestion that there had been talks with the former Portsmouth owner.

Moxey has taken a similar stance over Souness, who has been out of work since he was sacked by Newcastle in February 2006. The chief executive claimed that the former Scotland and Liverpool captain had attended the Barnsley fixture only because of a chance meeting on a flight to Florida and he was equally dismissive about a possible takeover. "There are no negotiations with Graeme Souness or anyone connected to Graeme Souness," said Moxey.